TrackLoop (TOOL.C) enters $5.1 billion California cannabis market

On November 28, 2018 TrackLoop (TOOL.C) announced its entry into the recreational and medical cannabis industry – empowering “licensed producers, logistics providers, and leasing companies” to track the flow and quality of cannabis products from seed to sale.

To understand TrackLoop’s business niche, you need to grasp, “The Internet of Things” (IoT).

The lowdown: The Internet of Things refers to the exploding network of physical objects that have an IP address for internet connectivity, and the communication that occurs between these objects.

Granted, it may not be intuitively obvious why a toaster-oven needs to converse with a rectal thermometer – but trust me IoT is a gigantic thing.

Bigger than weed.

Bigger than blockchain.

Bigger than self-driving cars.

Bain research predicts the “combined markets” of the Internet of Things will grow to $520 billion in 2021 – more than double the 2017 spend of $235 billion.

“Picture this: data generated from sensors attached to machines on factory floors worldwide enables a supply chain manager to remotely pinpoint potential problems,” writes Margaret Harris of Oracle, “Meanwhile, artificial intelligence algorithms sift through current and historical data to predict and automatically schedule machine maintenance—and let the service tech know exactly which tools are needed—substantially reducing downtime.”

“Additional sensors monitor the temperature and other parameters of the products throughout manufacturing, warehousing, and delivery to verify that all factors meet contract specifications,” continues Harris. “And through integration with its manufacturing and supply chain systems, the company automatically receives the agreed-upon payment via a blockchain ledger system.”

TrackLoop lives inside this IoT niche that Harris so beautifully describes.

TOOL is an analytics software company that is leveraging Internet of Things (IoT), and digital asset technology to transform and modernize multiple industries.

TrackLoop is diversifying in the analytics and technology space, delivering practical solutions in the logistics, cannabis, finance and pharmaceutical industries.

TOOL’s turnkey real-time tracking solutions offer the very latest in IoT and AI, providing valuable data and business intelligence to some of the world’s leading brands.

TrackLoop has partnerships – today, wrote Equity Guru’s Chris Parry.

  • Walmart
  • The Canadian Blood Services
  • Save-On-Foods
  • SPUD.CA
  • BC Ferries
  • FOOD-X
  • California Air Resources Board

“If TrackLoop had been in business for five years and had that track record, you’d kiss the feet out from under them. But it’s still early days for TrackLoop. Their recent acquisitions brought in major clients which gives them massive credibility, not only to smart investors but also to future potential clients.”

TrackLoop’s technology combines cold-chain (refrigerated supply chain) monitoring, GPS tracking, and equipment health monitoring – spitting out real-time data at every point on the supply chain including production, transport and retail.

“The regulated cannabis market in the U.S. represents a huge opportunity for TrackLoop’s fully integrated offering,” states Zayn Kalyan, CTO of TrackLoop, “Licensed producers and logistics providers are under increasing pressure from regulators to provide sufficient supply chain data.”

The demand-side of this equation is amplified by an increasingly discerning customer base.

Kalyan believes that as consumers demand a better-quality product, producers and retailers need to oversee every part of the supply chain to guarantee the delivery of a premium product.

The California market represents nearly a third of the entire North American cannabis market.

Analysts with Cowen & Co. believe that entire American cannabis market could reach $26 billion by 2026, with California accounting for about $25 billion of that market.

TrackLoop has an established sales and marketing presence in California via the company’s recent acquisition of Chaintrack Technologies.

The company also has a strong partnership with Volta Air, which has a large footprint in California and relationships with the California Air and Resources Board (CARB).

The partnership with Volta Air ensures the company has access to a large channel for sales and distribution of a turn-key solution with vertically integrated  hardware/software capabilities embedded.

Key Highlights:

  • First fully integrated and compliant cannabis specific solution
  • Combines IoT-powered GPS, Coldchain, Equipment Monitoring, Routing and Scheduling in Single Solution
  • Established sales channels and partnerships in large California market.

Sending a truck of weed onto the highway without cold-chain monitoring is like sending an unaccompanied child to school in snowstorm.

You’re going to want to make sure that kid arrives on time, in its original condition.

Full Disclosure: TrackLoop is an Equity Guru marketing client, and we own the stock.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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